The ecological transition, and how to finance it in the most vulnerable countries, has been at the center of COP29 for two weeks (Conference of the Parties or Conference of the Parties) in Baku (Azerbaijan). This Climate Summit is being held this year in an environment that is not very favorable to sustainability, for several reasons. On the one hand, the victory of Donald Trump, an openly anti-ESG politician, in the US presidential elections poses challenges to certain green sectors. On the other hand, there is a certain lasting fatigue in Europe due to the barrage of regulations that companies, banks and asset managers have had to face since 2021. Visit elEconomista ESG, the green portal of elEconomista.es.
Concerning stock market performance, 2024 has not been easy for ecology. Listed companies linked to clean energy fall: the sector index, the S&P Global Clean Energy, falls by 23% compared to a 24% rise in a broad index such as the S&P 500. Investor attention has been focused more on geopolitical tensions than on sustainability. For retail investors who have adopted a sustainable orientation in their portfolios, this year may also have meant asking themselves whether they would be willing, even temporarily, to lose some of their profitability in exchange for their contribution to the energy transition.
Regardless, in Spain there is a range of funds focused on this green transition and allowing double-digit returns to be obtained in 2024. In this selection we have examined only the most demanding in terms of sustainability, those classified as section 9 in accordance with the European Disclosure Regulation. This type of vehicles They guarantee to the investor that they have a specific sustainable development objective and are also required to demonstrate periodically how they contribute to achieving this.
Stands out from the rest Sycomore Fund SICAV – Sycomore Sustainable Tech R EURwhich has appreciated 26% so far this year. At 3 years, profitability is 3.6% annualized. The stocks that weigh the most in the portfolio are Microsoft, Nvidia and Workday, supplier of software UNITED STATES. The top 10 positions account for almost 50% of the investment (in total, it holds positions in around forty companies). Volatility is not for everyone, as it averages around 23% over the three-year period. It has 3 stars from Morningstar.
Also with 3 stars, the Mandarin Global Transition R it increases by more than 15% in 2024 (in annualized returns over 3 years, it falls by 1.9%). Its volatility is not low, but it is a little more moderate than the previous one, around 16%. 51% of investments are made in the United States and 30% in Europe. Among the most heavily weighted in the portfolio, we find Republic Services, an American waste management company, Schneider Electric and the Californian engineering company Tetra Tech.
He Fidelity Sustainable Clt Sol E Acc EUR A little less than 15% are rated during the year, again with a three-star rating. NextEra, Microsoft and Taiwan Semiconductor are among the top holdings in the portfolio. In 3 years, it has fallen by 3.8% at an annualized rate.
JPM Climate Change Solutions D (acc) – EUR (hedged) It is a product that will rebound by more than 14% in 2024, and which has not yet reached three years of life (which is why it is not yet possible for it to receive Morningstar stars). 45% of investments are made in the United States and almost 30% in Europe. Among the companies that weigh the most in the portfolio is the Spanish Iberdrola.
For his part, the Vontobel Global Envir Change C EUR increases by more than 13%. It is longer, and after 5 years it increases by 10.7% annualized. Once again, among the most weighted companies we find Iberdrola, as well as the fiber optic cable manufacturer Prysmian.
Always with returns above 10% over the year, AB Sust Climate Solutions AEUR and the Robeco Smart Energy M2-EUR Cap (the latter displays 5 stars), while three other funds from Candriam, Polar Capital and BNP Paribas progress between 8% and 5%.
